What does refund transfer mean?

[chelleg1207]

I filed my refund to be sent to direct deposit bit it says tranfer refund. What does that mean?

[mesquitebean]

Did  you to choose to pay your TurboTax fees out of the Federal refund?

If so, that service is called "refund processing" or "refund transfer service".   An intermediary company opens a bank account in your name at an intermediary bank.    That bank receives your refund from the IRS, subtracts the fees, then sends the rest to your bank account (or card) in a second direct deposit.

There is a $40 fee for that service ($45 for California filers.)